Right now I have that feeling you get when you build something you are quite proud of and then someone else comes along and does it far far better for free. C'est la vie I guess. Onto the next thing, whatever that may be
Just because it is Google doesn't mean that you're doomed. If it did, then Dropbox would have instantly folded to Google Drive. They didn't.
Really this is not you against all of Google. It is you against a small team of people at Google who have some inherent marketing advantages, but who also have a lot of corporate overhead that you don't, and who knows what internal barriers to doing what they want to do. (Which might not even be the right direction.)
Is it a competitive threat? Sure. Is it a foregone conclusion? No way!